Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4 a) Dudu Berhad's projected sales for the first six months of 2021 are given below. 2021 January RM250,000 February RM340,000 March RM280,000 April
Question 4 a) Dudu Berhad's projected sales for the first six months of 2021 are given below. 2021 January RM250,000 February RM340,000 March RM280,000 April RM300,000 May RM350,000 June RM380,000 20% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 30% are collected in the second month following the sale. Cost of goods sold is 55% of sales. Purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale. Total other cash expenses are RM70,000/month. The company's cash balance as of February 28th_2021 will be RM10,000. Excess cash will be used to retire short-term borrowing (if any). Dudu has no short-term borrowing as of February 28, 2021. Ignore any interest on short-term borrowing. The company must have a minimum cash balance of RM10,000 at the beginning of each month. What is Dudu Berhad's total disbursement in May? Required: a) Prepare the cash budget for March, April and May 2021. (10 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started